Competition Appeal Tribunal upholds penalty decision for bid rigging

20/01/25

In March 2023 the Competition and Markets Authority (CMA) decided that 10 suppliers of demolition services, including Keltbray, had breached competition law by colluding in the making of bids tendered for contracts to demolish various buildings in England.  8 of the 10 suppliers, including Keltbray, settled the case. As a result of its settlement, the CMA reduced Keltbray's fine from £20 million to £16 million.

Keltbray changed its mind and appealed to the Competition Appeal Tribunal (CAT) on the basis that the £16 million fine was disproportionate. 

In December 2024 the CAT held that the CMA had correctly applied its Penalty Guidance when identifying relevant markets and relevant turnover.  The CMA’s application to revoke the 20% settlement discount granted to Keltbray was also successful. The CAT differed with the CMA’s reasoning on the seriousness of the infringements, and held that an overall penalty of £18 million appropriately reflected the fact that Keltbray was involved in 8 infringements. Accordingly, the CAT increased Keltbray's fine by £2 million. 

The judgment is available here.